The quickest way to double your money is to fold it over and put in back in your pocket.
Previously, we have talked to you about saving. This time, from Steering Bird, online advisers in business direction, management and finance, we will give you some tips to better organize your income and increase your willingness to save money.
If saving money is wrong, I don’t want to be right!
The tips that we consider important are:
- You do not know what you spend your money on. If you are not able to identify what items you spend your money on every month, it will be difficult for you to stop your consumption and leave room for savings. Don’t depend on your memory to control your expenses. There are several methods to control this, from an agenda, a notebook, a spreadsheet or one of the many mobile applications on the market.
- Set limits on your expenses. Use a budget, stick to it and control it. This will also help you identify where you are spending your money and be able to make savings more available.
- Set goals to save money: Set an objective and goals to save money. You don’t save without goals. The more you accumulate money towards that goal, the better you will feel and perhaps your willingness to save more will increase.
- Change the paradigm. We have told you that, in theory, saving is the balance of your income after consuming. Change this paradigm and establish your savings as a priority, before you start spending. Thus, you will be able to manage your expenses and your savings, ceasing to consider it as the residual value of your cost of living.
- Do not spend beyond your means. Review your lifestyle, what is necessary and what is not. Identify your expenses and eliminate unnecessary ones. Do not fall into negative savings or dissavings.
- Review your consumption decisions. Before making any purchase, ask yourself if you need it or if you really want it. Also, ask yourself if you are sure of making a purchase. If you’re not, don’t do it. You will not regret.
- Think long term. You start building your future today. Think long term. Save for the future. As Mark Twain pointed out “the future interests me, I am going to spend the rest of my life there”
- Do not be a victim of advertising. You should avoid falling into useless fashions or purchases guided by the current advertising. The latest iPhone or the latest Armani collection won’t change your life. Advertising tries to guide your decisions to consume things that you do not need. Coca-Cola has been selling happiness for about 100 years and it’s not what you get when you buy their sugary drinks. We invite you to read our article Are your decisions guided by psychological anchors?
- Prioritize savings. Make it relevant, not residual. In this way, you will give it the importance it deserves and you can effectively save.
- Don’t keep your surpluses in your wallet. If you have excess cash, for example, in a week, do not keep it in your wallet. Store it anywhere else in your home, before deciding whether to save it.
- Use a method to save. There are several simple systems that you can implement to start realizing your savings. You can use envelopes, bags, piggy banks, boxes, etc. Whatever allows you to save. You can give each of these elements a specific purpose and add a periodic amount of money to it.
- Start saving. Do you want to save? It is not enough, wanting is not power. Doing is power, so just start saving. Rome was not built in a day.
Follow the tips that we have given you. Apply them both in your personal finances and in your business and start saving. Your future will depend on the decisions you make today.
You’ve already started saving. Now what?
Many of the things you can count, don’t count. Many of the things you can’t count, really count.
Once you’ve started gathering your savings, you don’t want to keep them all at home. There are several options to keep those monies. In general, commercial Banks offer low-risk financial instruments for your savings, such as deposits, which pay very low interest rates and, depending on the contract, they add or not inflation. You also have to check the guarantee limits on your deposits. On the other hand, every time you give your money to the banks, they can lend it up to ten times, in different forms of credits and with quite high interest rates. However, this is not our cup of tea right now.
There are countries where there are other institutions that offer some way for you to keep your savings, such as Savings and Loan institutions or Pension Fund institutions. You can also accumulate a certain sum and invest it. Don’t forget our article 10 tips for investing.
The final message is that you do not spend all your income, that you give priority to saving and investing. Don’t be a victim of negative savings. It is the first step to your financial freedom.
We are Steering Bird, online advisers in business direction, management and finance. We specialize in business analysis, control and analysis of investment projects, results analysis, processes of budget and forecast, etc.